LT Foods | CRISIL revised its outlook on the long-term bank facilities of LT Foods to ‘positive’ from ‘stable’ while reaffirming the rating at ‘A-‘. The short-term rating has been reaffirmed at ‘A2+’.
Consumer food company LT Foods, which owns basmati rice brands such as ”Daawat” and ‘Royal”, on Wednesday announced acquisition of a 30 percent stake in the Netherlands-based organic speciality food company Leev.nu.
Nature Bio Foods BV, a subsidiary of LT Foods, has acquired 30 per cent stake in Leev.nu, with an option to acquire a further 21 per cent stake at the end of five years, a joint statement said without disclosing the deal amount.
After this deal, Leev.nu will have access to the organic products grown by Nature Bio Foods.
Commenting on the development, LT Foods Chairman & Managing Director Vijay Kumar Arora said, “Leev.nu will now have access to 100 per cent organic products grown by Nature Bio Foods Limited’s network of nearly 60,000 plus organic farmers, cultivated in 80,000 plus hectares of certified organic land in India”.
Now consumers of the Netherlands will enjoy organic ingredients from India with local distribution in the Netherlands.
“This will further promote the share of India’s organic in EU,” he added.
Leev.nu Director Leo Voorwinden said: “From a strategic point of view, it is critical that we build short supply chains. With NBF BV, a subsidiary of LT Foods coming on board, we can source our raw materials directly from organic farmers in India.”
Leev.nu has a portfolio comprising breakfast bars, healthy snacks, baking range & gluten free, low sugar products that promote an active & healthy lifestyle.
Further, it is expanding its product portfolio and venturing into organic wholegrains categories such as oats and flax seeds and its products are available in both retail and online stores, it added.
Nature Bio Foods has already set up distribution subsidiaries in USA & Europe and is a preferred ingredient supplier to retail majors which includes Walmart and Carrefour.
LT Foods, a 70-year-old consumer food company, which is in the business of rice and rice-based food brands, operates in more than 60 countries.
The company had consolidated revenues of around Rs 4,184 crore in FY20. It owns brands such as DAAWAT, Royal, Heritage, Gold Seal Indus Valley, 817 Elephant, Devaaya and Rozana.
It has five processing facilities in India, two packaging units and one Ready-to-Heat facility in the US and one processing facility in Rotterdam.
News Source:- Moneycontrol